Jump to main content or area navigation.

Contact Us

Combined Heat and Power Partnership

REAP - Guaranteed Loan and Grant Program

Date Last Updated3/20/2014
Incentive TypeLoan; Grant
Incentive Administrator/Contact OfficeUSDA - Rural Development
Incentive Initiation Date5/13/2002
Incentive Size and Funding SourceThe Renewable Energy for America Program's (REAP) Renewable Energy System and Energy Efficiency Improvement Guaranteed Loan and Grant Program provides financial assistance to purchase and install renewable energy systems and energy efficient improvements in rural areas. $12 million in grant funding and $57 million in guaranteed loans are available, as well as funding for grant/loan combination requests.

Grant funding will not exceed 25% of total eligible project costs and the maximum amount available to one individual or entity per fiscal year is $750,000. The maximum and minimum grant amounts are as follows:
  • Renewable energy projects: $2,500 - $500,000.
  • Energy efficiency projects: $1,500 - $250,000.
The maximum guaranteed loan is $25 million and the minimum loan is $5,000. Up to 75% of project costs can be covered through the loan program. Interest rates are negotiated between the lender and the borrower. The program provides guarantees to commercial lenders who make loans to rural small businesses or agricultural producers for energy projects. The following guarantee limits apply:
  • 85% for loans of $600,000 or less.
  • 80% for loans greater than $600,000 up to $5 million.
  • 70% for loans greater than $5 million up to $10 million.
  • 60% for loans greater than $10 million up to $25 million.
Eligible RecipientAgricultural producer or rural small business.
Eligible FuelDoes Not Specify
Eligible Project Size (MW)Does Not Specify
Minimum Efficiency Required (%)Does Not Specify
Other Incentive DetailsUSDA Rural Development is now accepting applications, but an application deadline has not been set for 2014. The REAP guaranteed loan application deadline is expected to be July 31, 2014.

REAP is no longer offering feasibility study grants and renewable energy development assistance or energy audit grants in 2014.
Resource Website(s)

Top of page

Jump to main content.